• Investing
  • Stock
  • Editor’s Pick
  • Economy
The Significant Deals
Editor's Pick

Turkey’s central bank holds rate steady, market eyes December cut

by November 21, 2024
written by November 21, 2024

By Ezgi Erkoyun and Huseyin Hayatsever

ISTANBUL (Reuters) -Turkey’s central bank held its policy rate steady at 50% on Thursday, as expected, and said it remained attentive to inflation risks, while analysts said its comments opened the way for a possible rate cut next month.

“The level of the policy rate will be determined in a way to ensure the tightness required by the projected disinflation path, taking into account both realised and expected inflation,” the bank said after its monetary policy committee meeting.

The lira traded at 34.4975 against the dollar after the announcement, off its lows but weaker on the day.

“We believe that the central bank’s new statement on the tightness of monetary policy opens the door to rate cuts,” said Haluk Burumcekci, founding partner at Burumcekci Consulting, adding a cut next month was a serious option.

“However, uncertainty remains regarding the size of the initial step and whether it will evolve into a cycle.”

Governor Fatih Karahan said this month that monetary policy would remain tight even when a rate-cutting cycle started, and that keeping the current interest rate amid improving inflation expectations would amount to a tightening.

The central bank has kept rates steady since March, when it raised its policy rate by 500 basis points to round off an aggressive tightening cycle that started in June last year to rein in soaring inflation.

In a change of messaging in September, it began setting the stage for a rate cut by dropping a reference to potential further tightening, but it has continued to voice caution on inflation.

In October, inflation was higher than expected, dipping only to 48.6% annually, underscoring the continuing battle against soaring prices.

A Reuters poll showed the bank was expected to hold rates steady in November, with a rate cut seen in December or January.

Earlier this month, the central bank raised its year-end inflation forecasts for this year and next to 44% and 21% respectively, vowing to keep policy tight to ensure disinflation continues.

The central bank hiked rates by 4,150 basis points between June last year and March as part of an abrupt shift to orthodox policy after years of low rates that triggered a series of currency crashes and sent inflation soaring.

A test of the government’s commitment to taming inflation will come at the end of the year, when it is set to hike the minimum wage.

This post appeared first on investing.com
0 comment
0
FacebookTwitterPinterestEmail

previous post
South African Reserve Bank cuts repurchase rate to 7.75%
next post
Turkish job seekers losing hope amid painful economic rebalancing

You may also like

China central bank conducts 1.7 trln yuan of...

January 27, 2025

Fuji Media, rocked by sexual misconduct allegations, says...

January 27, 2025

ECB president fears loss of central bank independence

January 27, 2025

European tech shares tumble as China’s AI push...

January 27, 2025

Futures slip as investors eye China’s latest AI...

January 27, 2025

Markets may be repeating the mistake of 2019,...

January 27, 2025

How billionaire Caltagirone could influence Italy’s banking M&A...

January 27, 2025

How Italy’s MPS went from near collapse to...

January 27, 2025

Analysis-To weather Trump, emerging market investors look to...

January 27, 2025

Chinese AI startup DeepSeek overtakes ChatGPT on Apple...

January 27, 2025
Fill Out & Get More Relevant News








    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Recent Posts

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks

      June 26, 2025
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

      June 26, 2025
    • Bumble shares jump 26% as dating company plans to axe 30% of workforce

      June 26, 2025
    • Small-business AI use is lagging, but one firm is channeling Sherlock Holmes and knocking out ‘grunt work’

      June 25, 2025

    Categories

    • Economy (245)
    • Editor's Pick (3,646)
    • Investing (534)
    • Stock (6,426)

    Latest News

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

    Popular News

    • US pending home sales hit 21-month high in November
    • ECB starting to debate if rates have to go below neutral, sources say

    About The Significant deals

    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 thesignificantdeals.com | All Rights Reserved

    The Significant Deals
    • Investing
    • Stock
    • Editor’s Pick
    • Economy